MetLife, Inc. (NYSE:MET) Holdings Lifted by Algebris UK Ltd

Key Points

• Algebris UK Ltd increased its stake in MetLife by 25.8% during Q1, now owning about 6.1% of the company, which is its fourth largest position.
• Several hedge funds, including Brighton Jones LLC and Loomis Sayles & Co., also boosted their holdings in MetLife, indicating strong interest from institutional investors.
• MetLife reported earnings of $1.96 per share, missing estimates, and announced a $3 billion share buyback program, reflecting confidence in its undervalued stock.

Algebris UK Ltd grew its stake in shares of MetLife, Inc. (NYSE:MET - Free Report) by 25.8% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 449,773 shares of the financial services provider's stock after purchasing an additional 92,140 shares during the period. MetLife comprises approximately 6.1% of Algebris UK Ltd's portfolio, making the stock its 4th biggest position. Algebris UK Ltd owned about 0.07% of MetLife worth $33,431,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Ball & Co Wealth Management Inc. bought a new stake in shares of MetLife during the fourth quarter valued at about $25,000. Transce3nd LLC bought a new position in shares of MetLife during the 4th quarter valued at $26,000. North Capital Inc. purchased a new position in MetLife in the 1st quarter worth $26,000. Quarry LP purchased a new position in MetLife in the 4th quarter worth $31,000. Finally, Motco raised its holdings in MetLife by 105.5% during the 1st quarter. Motco now owns 413 shares of the financial services provider's stock valued at $33,000 after buying an additional 212 shares during the last quarter. 94.99% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts recently commented on MET shares. Wall Street Zen lowered MetLife from a "buy" rating to a "hold" rating in a research note on Saturday, May 24th. Wells Fargo & Company restated an "overweight" rating and issued a $97.00 price target (up previously from $94.00) on shares of MetLife in a research note on Thursday, July 10th. Barclays raised their price target on shares of MetLife from $88.00 to $94.00 and gave the company an "overweight" rating in a research report on Monday, July 7th. Morgan Stanley reissued an "overweight" rating and set a $98.00 price objective (down from $99.00) on shares of MetLife in a report on Monday, July 14th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of MetLife from $95.00 to $94.00 and set an "outperform" rating on the stock in a report on Wednesday, July 9th. Two research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat, MetLife currently has a consensus rating of "Moderate Buy" and a consensus price target of $96.09.

MetLife Stock Performance

Shares of MET traded down $2.14 during mid-day trading on Friday, reaching $73.81. The company had a trading volume of 2,760,500 shares, compared to its average volume of 3,378,173. MetLife, Inc. has a 52-week low of $65.21 and a 52-week high of $89.05. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $49.55 billion, a P/E ratio of 12.02, a PEG ratio of 0.61 and a beta of 0.85. The stock has a 50 day moving average of $78.46 and a two-hundred day moving average of $79.55.

MetLife (NYSE:MET - Get Free Report) last released its earnings results on Wednesday, April 30th. The financial services provider reported $1.96 EPS for the quarter, missing analysts' consensus estimates of $2.00 by ($0.04). MetLife had a return on equity of 20.89% and a net margin of 6.08%. The company had revenue of $18.57 billion for the quarter, compared to analysts' expectations of $18.06 billion. During the same period in the prior year, the firm earned $1.83 EPS. The firm's revenue for the quarter was up 15.6% on a year-over-year basis. On average, analysts expect that MetLife, Inc. will post 9.65 earnings per share for the current year.

MetLife Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Tuesday, August 5th will be paid a $0.5675 dividend. This represents a $2.27 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, August 5th. MetLife's dividend payout ratio is 36.91%.

MetLife declared that its board has initiated a share buyback plan on Wednesday, April 30th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 5.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its stock is undervalued.

About MetLife

MetLife, Inc, a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements.